Reduction of benefits of contributors—the Act, s 61WD(j)
15 Reduction of benefits of contributors—the Act, s 61WD(j)
This section applies if the amount of the family law superannuation entitlement of a non-contributor spouse is paid, released, transferred or rolled over under the Act, Part 4A.
Subject to subsection (3), a benefit payable to the contributor, including a benefit transferred under the Act, must be reduced in accordance with this section at the time it is paid to the contributor or transferred.
If the benefit is a deferred benefit, the deferred benefit must be reduced in accordance with this section—
if the election to take the benefit was made before the superannuation entitlement of the non-contributor spouse was paid, released, transferred or rolled over—at the time the entitlement is paid, released, transferred or rolled over, or
otherwise—when the election to take the benefit takes effect.
The amount of the reduced benefit must be calculated as follows—
where—
r is the amount of the reduced benefit.
v is the amount of the benefit that would have been payable to the contributor if the family law superannuation payment had not been made.
A is the ratio of the amount paid in relation to the non-contributor spouse to the value of the benefit of the contributor when the payment split occurred.
C is the ratio of the benefit accrual when the payment split occurred to the benefit accrual when the benefit is payable or deferred or transferred, as the case requires.
If family law superannuation payments are made in relation to more than one spouse of the contributor, the amount of the reduced benefit, other than a deferred benefit, must be calculated by applying to the amount of the reduced benefit payable under subsection (4), the reduction factor for each family law superannuation payment.
Each reduction factor must be calculated as follows—
where—
f is the reduction factor.
A and C have the same meaning as in subsection (4).
In this section—
benefit accrual, at a particular point in time, means the benefit accrual at that time as determined by STC on actuarial advice.
value of a benefit means the value of the benefit as determined by STC on actuarial advice.
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